A Responsible Form 
of Government 




























A Responsible Form 
of Government 


A Discussion of the Civil Administrative 
Code Enacted by the Thirty-seventh 
(1919) Session of the Nebraska 
State Legislature 



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By SAMUEL R. McKELVIE, 

Governor of Nebraska 















Published by 
Samuel R. McKelvie 
December 1, 1919 


n, of b, 

MAB 9 1920 



A Responsible Form of Government 

A Discussion of Nebraska's Civil Administrative Code 
By Samuel R. McKelvie, Governor of Nebraska 

T HE United States of America was the first strictly repub¬ 
lican form of government ever established. It stood as 

a happy medium between two extremes—on the one 
hand, an autocracy with all power centered in one individual; 

on the other hand, a pure Democracy which contemplates 
direct action by all the people. It was indeed a representa¬ 
tive form of government, which protected individual rights 
and provided for the economical and efficient administration 
of government. The entire system consisted of three distinct 
branches of government: Executive, legislative, and judicial; 
the first two filled by popular vote, and the third by 
appointment. 

From the fact that the Federal Constitution (Article IV, 
Section 4) provides that “the United States shall guarantee 
to every state in this Union a republican form of govern¬ 
ment” it may be inferred that each state was expected to 
follow this plan of government; and, in fact, such was the 
general belief as evidenced in public discussions of that time. 
But Nebraska, not unlike the majority of the states in the 
Union, early broke away from that ideal. 

When the Constitution of Nebraska was drafted in 1875, 
provision was made for electing not only a chief executive, but 



also several other executives who were to head the different 
departments of state government. As the state grew, various 
boards and commissions were created, and these boards were 
given both executive and administrative power. It was evi¬ 
dently thought that greater security to individual and property 
rights could be obtained through the delegation of authority 
to numerous elective and administrative officials, boards, and 
commissions. 

But finally there was so much confusion of authority and 
responsibility that the system itself became a menace to good 
government. As a result, many efforts to better the situation 
have been made in the past few years; governors and legisla¬ 
tive committees have repeatedly urged reforms. In 1914, a 
joint committee of the Senate and House reported eighty-two 
distinct objects of appropriation and expenditure, whereas the 
state had started out with seven executive departments in 1875. 
This commitee recommended consolidation of the vast number 
of miscellaneous departments wherever possible. Governor 
Morehead, during his administration, advocated the consolida¬ 
tion of departments and declared that where he had been able 
to follow such a plan he had always showed a saving in ex¬ 
pense and an improvement in efficiency. Later, Governor 
Neville declared that “divided authority and divided responsi¬ 
bility produce waste and inefficiency'’ and asserted that “it is 
impossible to handle the state’s affairs in the efficient manner 
that would be demanded by any business man in the conduct 
of his private transactions.” 

Noting the successful operation in Illinois of that state’s 
civil administrative code, the Republican party of Nebraska 
brought the entire proposition to a head, in 1918, by making 
the following declaration in its platform: 

“We favor the enactment of a Civil Administrative Code 
in this state, creating a financial and accounting system 


whereby a vigorous and effective audit over financial expendi¬ 
tures of the state may be established, and providing for the 
consolidation of the boards, institutions, commissions and dif¬ 
ferent departments and agencies of government, thereby elim¬ 
inating useless offices and positions and avoiding the over¬ 
lapping functions thereof; and we further favor the creation 
of an effective budget system to the end that government 
functions may be more efficiently and economically adminis¬ 
tered.” 

The Thirty-seventh Session of the Nebraska Legislature 
carried this plan into effect with the enactment of Nebraska’s 
Civil Administrative Code. Although the bill contained over 
500 pages, only twenty pages consists of new legislation pro¬ 
viding for the establishment of the present system of adminis¬ 
tration. The rest of the bill consists of legislation that had 
been previously enacted and was included in this bill in 
order to bring it under the Code. 

The Civil Administrative Code eliminates eleven boards 
and commissions and ten other subdivisions of departments. 
It creates the following six administrative departments: 
Finance, Agriculture, Trade and Commerce, Labor, Public 
Works, and Public Welfare. These departments are admin¬ 
istered by secretaries appointed by the Governor with the 
consent of the Senate. Each of these secretaries receives an 
annual salary of $5,000. The six departments are sub¬ 
divided into bureaus and divisions, the head of each of which 
is designated as a “chief.” The six secretaries are respon¬ 
sible to the Governor, the chiefs of the bureaus and divisions 
are responsible to their respective secretaries, and the minor 
employees are responsible directly to their chiefs. Thus 
responsibility is fixed at every station and the commonly 
recognized practices of business administration are established. 

The work of each of the six Code departments is briefly 
outlined in the following pages. 


Department of Finance 


The organization of the Department of Finance well illus¬ 
trates some of the changes that the Code Bill has made in the 
administration of the state’s affairs. This department is 
charged with the preparation and submission to the Legisla¬ 
ture of a budget of expenditures and revenues for the next 
biennium. Estimates of necessary expenditures are secured 
from each department, together with estimates of the money 
to be derived from taxation and other sources. This does away 
with numerous demands which boards and commissions have 
made upon the Legislature in the past and puts the entire 
financial system on a business basis. The Bureau of Taxation 
was created as a subdivision of the Department of Finance 
and has supervisory powers over all taxation questions in the 
state. 

To reduce duplication in financial accounting and obtain 
control over expenditures, the Division of Accounts and Pay 
Rolls in the Department of Finance has taken over the finan¬ 
cial accounting work formerly carried on in the separate 
departments, boards and commissions. Heretofore purchases 
have been made and contracts have been let without anyone 
certifying that funds would be available to meet the expense. 
Under the new plan the Department of Finance has supervision 
over all funds. As soon as a purchase order is given by any de¬ 
partment the estimated cost of the purchase is charged to the 
respective fund, making it impossible for any department to 
overdraw its fund thus preventing the creation of deficits. At 
the end of each month the Department of Finance certifies to 
each of the Code departments the money remaining unencum¬ 
bered in the fund of that department. 

A modest civil service plan has been instituted under the 
Code. The same pay for the same duties is now paid through- 


out the state service regardless of department lines. Arrange¬ 
ments are also made for the recognition of increased efficiency 
through advancement in position and pay. The Department 
of Finance keeps an employees’ efficiency service record, which 
serves as a basis of recommendations for promotion from one 
position to another. 

A daily and monthly work report has been established in 
each department. It shows the daily service performed by 
each employee. Heretofore there had been no general record 
of the daily attendance of the State’s employees, and the only 
available check on each employee’s service was the statement 
of the head of the department, board, or commission to the 
effect that the employee had completed a month’s service. 
Uniform regulations providing for vacations and sick leave 
have also been established. 


Department of Agriculture 

The Department of Agriculture has full police power and 
control over the enforcement of laws relating to the subject 
of agriculture in all its branches. Within this department is 
the Bureau of Markets, created to aid farmers in their prob¬ 
lems of distribution and to prepare agricultural statistics. 
Methods of sorting and grading agricultural products will be 
evolved so that the markets of the world will be open without 
prejudice to the products of the farms of Nebraska. 

The Bureau of Foods, Drugs, Dairy, and Oil is charged 
with the enforcement of laws relating to food, sanitation of 
food, cold storage, drugs, commercial feeding stuffs, gasoline 
and kerosene, paint and linseed oil, imitation butter, commer¬ 
cial fertilizers, livestock remedies, dairies, weights and 
measures, agricultural seeds, and hotels. This bureau main- 


tains a chemical laboratory to which official samples of any 
article coming under these laws are submitted for analysis. 
The Division of Dairy Industry enforces laws relative to that 
industry and issues licenses to those engaged in handling dairy 
products. 

The Bureau of Animal Industry has charge of the work 
formerly performed by the Livestock Sanitary Board, giving- 
special attention to the prevention of hog cholera, to eradi¬ 
cation of cattle tuberculosis and to enforcement of the stallion 
registration laws. The Division of Weights and Measures 
looks after the inspection of scales and measuring devices 
including oil and gasoline measuring pumps, and enforces the 
laws relating to the standardization of building materials such 
as brick. The old Game and Fish Commission becomes a divi¬ 
sion of the Department of Agriculture. 


Department of Trade and Commerce 


The Department of Trade and Commerce combines the 
former banking, insurance, fire-prevention and securities de¬ 
partments. The Bureau of Banking has supervision over all 
state banks, building and loan associations, as well as over trust 
and investment companies. The Bureau of Insurance is in 
charge of a trained actuary and maintains a full corps of exam¬ 
iners. The Bureau of Securities was formerly known as the 
“Blue Sky Department” of the Railway Commission. This 
bureau supervises the issue and sale of the securities of all 
corporations, partnerships and individual enterprises. Its 
most important duty is to prevent the sale of fraudulent and 
worthless securities. The Bureau of Fire Prevention, formerlv 
known as the Fire Commission, enforces the state’s fire regula¬ 
tions and investigates fires of supposedly incendiary origin. 


Department of Labor 


This department conducts a free employment bureau, com¬ 
piles industrial statistics, enforces the laws relative to child 
labor, workmen’s compensation and employers’ liability, and 
looks after the welfare of workers. These laws were formerly 
administered by the Commissioner of Labor; but the work of 
the Department of Labor is much more extensive. 


Department of Public Works 

The most important subdivision of the Department of 
Public Works is the Bureau of Roads and Bridges. This 
bureau has charge of the construction of all state and federal 
aid roads, the designing of all county bridges, the construction 
of state-aid bridges, and the administration of the motor 
vehicle tax laws. This bureau w r orks in close co-operation with 
the county commissioners and the federal government in super¬ 
vising the expenditure of funds for the improvement of 
Nebraska’s system of state roads. About 4,500 miles of road 
are now being improved under the supervision of this bureau 
with the aid of state and federal funds. Another very import¬ 
ant bureau in this department is the Bureau of Irrigation, 
Water Power and Drainage. This bureau has supervision 
over matters dealing with the irrigation sj^stems of the state 
as well as over all water-power developments. 


Department of Public Welfare 

Sixteen former departments and boards have been merged 
into the Department of Public Welfare which has to do with 
matters relating to sanitation, quarantine and general public 


health, licensing of professional people, paroling of prisoners, 
and child welfare, including the inspection of maternity homes. 
All records are kept- in the central office at Lincoln. 

The Bureau of Health, in this department, maintains 
divisions of contagious and communicable diseases, sanitation, 
sanitary engineering, venereal diseases, vital statistics, and a 
bacteriological laboratory, each supervised by an expert. 

The secretary of the Department of Public Welfare acts 
as chief of the Bureau of Examining Boards and the law pro¬ 
vides that he “shall have the right at all times to inspect the 
equipment and methods of teaching in all professional schools, 
and shall have the power to refuse examination to the graduates 
of any school which, upon proper notice and hearing, shall be 
adjudged not a professional school in good standing as defined 
bv the laws of this state.” This bureau is divided into the 
divisions of physicians and surgeons, osteopathy and osteo¬ 
pathic physicians, chiropractic, dentists, nurses, pharmacy, 
optometry, embalmers, veterinary medicine and chiropody. 

The powers of the former Board of Pardons and Paroles 
are now vested in this department and come under the Bureau 
of Social Service. All applications for pardons and paroles 
are now made to the secretary of the Department of Public 
Welfare, and the Bureau of Social Service makes whatever 
investigations are necessary in each case. 

The chief of the Bureau of Child Welfare exercises general 
supervision over dependent and delinquent children, cares 
for their training and education, investigates the importation 
of dependent children from other states, visits children placed 
but not legally adopted, and looks after the abused. 


Conclusion 


A system of uniform reports has been adopted throughout 
the departments. These reports are made out each week by the 
bureaus or divisions in each department, and are then sub¬ 
mitted to the secretary of the department, where they are com¬ 
piled. The secretary of each department makes a weekly re¬ 
port to the Governor showing the work performed in his de¬ 
partment. Through these, the Governor is able to visualize 
administrative conditions and results; and he makes these 
reports the basis of his annual reports to the Legislature and 
the public. 

The Civil Administrative Code accomplishes the State’s 
work with fewer employees and with greater efficiency than 
under the former system. A practical illustration of its 
principles may be found in any well-organized business. In 
every department store, for example, there will be found a 
responsible form of administrative government in which every 
employee makes an accounting to someone in higher authority, 
and no department is left for administration to a group of 
individuals with divided authority and responsibility. 

The handling of public business through the old system of 
boards and commissions is made doubly hazardous by the ever¬ 
present disposition of members of such groups to play politics. 
“Too much politics” is an absolute barrier to the accomplish¬ 
ment of results under the old system; and this barrier is par¬ 
ticularly in evidence when it happens that the principal boards 
or commissions are composed of members of opposing parties 
or warring factions. The Civil Administrative Code fixes 
definite responsibility for every detail of the state’s affairs. 

There is nothing complicated or mysterious about the 
Code. It is just this — a bill that provides for a simplified 


responsible form of government. It does away with the dupli¬ 
cation and overlapping of duties in many departments, and 

consequently brings about an increase in results per dollar of 
expense and an actual reduction in the number of employees. 
It makes possible a definite program for each department and 
subdivision, with appropriations justly commensurate with the 
work in hand. It takes care of the state’s money by centralized 
purchasing, standardization of salaries, and uniform control 
of expenditures. It provides for the formation of a budget 
for the Legislature’s guidance, embracing estimates of all re¬ 
sources and expenditures. Finally, it enables the Governor to 
make detailed reports to the Legislature and to the People so 
that every voter and every taxpayer may know whether the 
state’s affairs are being efficiently administered. 




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PRIOR TO RE-oROANIZATION UNDER 

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WNISTRATIVE SYSTEM OF NEBRASKA 

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